The founding of Disney Brothers Studio

We look at the first few years of the Disney Brothers Studio, which later became the Walt Disney Co., plus a few things you may not know about some of the greatest filmmakers in history.

The company that now owns Pixar, Star Wars, Marvel and massive theme parks almost failed from the start.

On Oct. 16, 1923, Walt Disney and his brother Roy Disney founded the Disney Brothers Cartoon Studio in Hollywood when Walt Disney was 21. The Disney brothers were born in Chicago and then moved to Kansas City at a young age. Walt Disney drew cartoons for various publications and became interested in cel animation while working for the Kansas City Film Ad Company.

Starting with bankruptcy

Walt Disney’s first business venture with animation was called Laugh-O-Gram Studio, where some of the greats in the field worked. After a series of shaky deals with distributors, the business went bankrupt in 1923. Walt Disney sued and won, but the compensation was too little to save the company.

Moving west

Walt Disney moved to Los Angeles, where Roy Disney was recovering from tuberculosis, rather than New York, where animation was big business. Walt Disney created a live-action and animated short produced by Laugh-O-Gram called “Alice’s Wonderland.” The brothers founded their company and persuaded both Virginia Davis, who played Alice, and their collaborator, Ub Iwerks, to join them in Hollywood where they had a contract to make six more films of the franchise.

The “Alice’s Wonderland” series was a success, but Walt Disney wanted to focus more on pure animation instead of mixing it with live action. He developed a character named Oswald the Lucky Rabbit, and after losing control of the character, he began work on his most famous creation.

His wife named him Mickey

To replace Oswald, Walt Disney and Iwerks developed Mortimer Mouse, but Walt Disney’s wife, Lillian, thought it too pompous and suggested Mickey instead. Iwerks revised Walt Disney’s provisional sketches to make the character easier to animate.

Mickey had appeared in a few short films, but became a worldwide sensation in 1928 with the release of “Steamboat Willie.” The eight-minute animated film was the first to have synchronized sound. It was an enormous success and led to more Mickey cartoons and the “Silly Symphony” series.

A nervous breakdown

In 1931, Walt Disney and his brother felt they were not receiving their rightful share of profits from their distributor. Walt Disney struggled to keep his team together and fought for a greater share of the profits to no avail, which led to a breakdown. He and his wife took an extended vacation to recover.

Folly or fantastic?

In 1933, Walt Disney produced “The Three Little Pigs,” a film credited as the most successful short animation of all time. This made Walt Disney believe they could do a feature-length film, and in 1934 work on “Snow White and the Seven Dwarfs” commenced.

The masterpiece was created by more than 750 Disney artists who worked on the film from 1934 to 1937. The production included 25 background artists, 65 special effects animators and 158 inkers and painters and countless production staff.

The project, which some dubbed “Disney’s Folly,” went 400% over budget, but the final product was a smash hit when it debuted on Dec. 21, 1937.

“Snow White” was the first American feature-length animated film and the first Technicolor feature. It cost an estimated $1.5 million during the depths of the Depression but earned $8 million in its first release, which is more than $174 million today.

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